Quiet Times Ahead - For Now
We generally find that the months of October and November are two of our busiest of the year. Although the number of sales agreed this October was steady, there was a definite nervousness to the market. This has continued into November and is mirrored elsewhere in the country. The overheated central London market has seen sales fall off a cliff.
Figures for the three months to the end of September 2014, showed ‘Sales agreed’ were 50% down on the previous three months. It is generally agreed that prices will grow slower in Central London from which the Home Counties and popular areas in the South West of England may profit.
Most agents would agree that the slowdown in the market is due to a number of factors, the main one being the upcoming general election next May, which always causes the market to take a breather. Moreover, there is fear about impending interest rate rises but these seem to be drifting further into the future and, finally, the impact on us from the current poor state of the European economy in general.
Both the Labour party and the Liberal Democrats plan to impose tax on homes worth over £2 million. This will, of course, affect mainly the London market but the South West has its own considerable share of such properties. The Historic Houses Association has warned that many of its houses face being sold off and closed due to the proposed mansion tax if it comes into force.
So what about prospects in the local housing market for the remainder of 2014 and into the beginning of 2015? It is very difficult to assess what is likely to happen in the short term, although it does seem clearer that the market will continue to grow in the medium and long term. Our first hurdle is the General Election and once that is settled, I am sure we will see the market continue to grow steadily for the rest of the year. There is nothing apart from a war or economic collapse that is likely to stall the property market.
I would like to wish all By The Dart readers a very Merry Christmas and a Happy and Prosperous New Year.
First published By the Dart December 2014
